HR Management & Compliance

Small Business Confidence Encourages Hiring

While large businesses’ profits have steadily increased since mid-2009, smaller companies have faced a tougher road. However, there may be signs that small businesses plan to ramp up hiring in 2011.

The optimism index of the National Federation of Independent Business measures small business confidence, and is often an indicator of the sales growth, market sentiment, and hiring buoyancy of smaller companies. During the recession, the NFIB index dropped substantially—and then remained low long after larger companies forecasted renewed sales.

The NFIB has now had several months of gains, reports the Wall Street Journal, with last month’s survey reporting that the number of firms planning on hiring more workers has risen to the highest level in more than two years.

Similarly, the Intuit small business employment index, which measures employment for companies with less than 20 employees, has shown rising numbers over the last year.

Small businesses still face many difficulties in this economy, among them: rising healthcare costs, funding for start-ups, and complying with new federal and state laws. But, with relaxed lending available via the new federal Small Business Lending Fund, and small profit gains expected in the coming year, small businesses may soon be looking toward hiring as the next step in their recovery.


Source: Wall Street Journal

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